Canva, the popular design platform, is implementing substantial price increases for certain subscribers, attributing part of this decision to the advancements in generative AI.
In the United States, some subscribers on older Canva Teams pricing plans are witnessing a dramatic increase, with the cost for a five-person plan skyrocketing from $119.99 per year to an astounding $500 per year (though a 40% discount is available for the first year). Meanwhile, in Australia, the consistent monthly fee of $39.99 AUD for five users has surged by $40.50 AUD per user.
Under the new pricing structure, Canva Teams now costs $100 per user, equating to $10 per month per user, with a minimum requirement of three users for a Teams plan. While these pricing adjustments were quietly enacted earlier this year for new customers, existing customers previously locked into lower rates are also facing these hikes now.
It’s important to note that these price changes do not affect Canva’s Pro or Enterprise tiers.
A spokesperson from Canva confirmed the updated price points in a statement to TechCrunch, citing the company’s expanding range of generative AI tools, including Magic Studio, as a key reason for the changes. They added that many customers had been benefiting from pricing structures that are no longer available; earlier this year, Canva modified its Teams pricing to $10 per month for each user.
“Our initial pricing reflected the early stage of our product and has remained stable for the last four years,” the spokesperson said. “We’re now revising the pricing for customers on this older plan to align with our enhanced product offerings.”
One user expressed that the recent increase in Canva’s pricing structure is among the largest seen year-over-year.
The backlash against Canva’s price hikes, especially in the context of the company’s preparations for an IPO, has been notable. Users expressed disappointment, particularly regarding the manner of communication—via customer emails rather than public announcements, as the company had done previously.
The new pricing is a stark departure from Canva’s original identity as a budget-friendly alternative to design software like Adobe. It could also indicate that the startup is expanding too swiftly; earlier this year, Canva acquired the U.K.-based graphic design software firm Serif for approximately $380 million and, in August, purchased the generative AI image company Leonardo.